Consider a Cournot duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi = 2. Based on this information, consumer surplus in this market is:

Examples of comparative advantage often begin with two countries that each produce the same two goods

Each country is then shown to have a comparative advantage in producing the good it can produce at a lower opportunity cost, and specializes in the production of the good for which it has a comparative advantage. How do these examples prove that both nations are made better off as a result of trade than they would be without trade?

Based on an analysis of macroeconomic outcomes under Republican and Democratic administrations, we would expect which of the following to occur?

A) Growth rates to be generally higher under Republican administrations. B) Macroeconomic policy to be relatively contractionary under Democratic administrations. C) Unemployment rates to be generally higher under Democratic administrations. D) Inflation rates to be generally lower under Democratic administrations. E) none of the above